Displays and Optics for xReality 2024

Glossary

Table of contents

Identity card

Report objectives

Scope of the report

Methodology and definitions

About the Authors

Companies cited

What we got right, what we got wrong

Context

• Accepted definitions for AR, MR & VR
• What we call “VR”, what we call “AR” in this report
• This report’s forecasts

3-Page Summary

• From VR to AR: a launch pad
• Display technologies: two kinds of segmentation 
• Optics: A standard rules VR, AR is search of its own

Executive Summary

Virtual Reality

• VR - Application trends
• VR - Market trends
• VR - Industry trends
• VR - Technology trends
  • VR - Technology trends - Microdisplays
  • VR - Technology trends - Optics
• VR - Key take aways

Augmented Reality

• AR - Application trends
• AR - Market trends
• AR - Industry trends
  • AR - Industry trends - Microdisplay manufacturing
  • AR - Industry trends - Optics manufacturing
• AR - Technology trends
  • AR - Technology trends - Microdisplays
  • AR - Technology trends - Optics
• AR - Key take aways

Outlook

Thanks to MR and AI: Resurgence and future growth

AR, VR, and MR are intertwined, but only AR and VR currently define technological device archetypes. Despite setbacks in 2022 and 2023 (-8% and -4% YoY growth), the market may experience a resurgence with VR headsets like Meta’s Quest 3 and Apple’s Vision Pro, which could enable MR use cases. These devices offer insight into the future of MR and empower developers to innovate. Apple's entry reshapes the landscape, offering a comprehensive ecosystem. Looking ahead, AR and VR products will focus on enhancing user experience and expanding use cases, with AI playing a pivotal role. AR glasses, potentially rebranded as AI glasses, hold promise for mass adoption. Between 2023 and 2029, the AR microdisplay market is expected to grow faster (67% CAGR) than VR (15%).

Tech Giants forge forward: How is the supply-chain adapting?

Tech giants are converging on the AR|VR|MR market, with AR seen as the ultimate consumer market and VR serving as a pathway for credibility and app development. Meta and Apple lead, while others like Huawei, Samsung, and Sony are expected to enter or enhance their presence. Adopting OLED-on-Si as a premium offer, the CMOS-based technology should become the display solution for this growing range of products. As a result, OLED-on-Si capacity is expected to grow tremendously – particularly in China with BOE, CSOT, Sidtek, Olightek, Seeya, and Lakeside - to be able to address a 30 million headset market by 2029. This oversupply should lead to intense competition, resulting in these displays trickling down to lower segments.

AR and VR: Two kinds of segmentation

AR and VR technologies differ significantly, particularly in display requirements, impacting their market segmentation. In VR, performance thresholds dictate the technology used, with LCD catering to the lower to mid-end and OLED-on-Si dominating the high-end with rapid growth. Conversely, AR segmentation hinges on use cases and technology maturity. OLED-on-Si targets niche markets with minimal growth, MEMS technologies like DLP and LBS face challenges in consumer markets but show potential in specific applications, LCoS offers a balanced trade-off and is expected to be integrated into early tech giant products, while microLED, ideal for consumer markets, faces adoption hurdles but anticipates significant growth driven by ongoing technological advancements and demand from OEMs.

4TH DIMENSION DISPLAYS, AKONIA HOLOGRAPHICS, ALEDIA, APPLE, APPLIED MATERIALS, AUO, AVEGANT, BAYER, BOE, BOSCH, BYTEDANCE, CANON, CASTAR, CELLID, COLOUR HOLOGRAPHIC, COMPOUND PHOTONICS, CORNING, DAQRI, DELL, DIGILENS, DISPELIX, EMAGIN, ETRI, EVG, EYEFLUENCE, FACEBOOK, FINISAR, FOVE, FRAUNHOFER, GLO, GOOGLE, HAMAMATSU, HIMAX, HOLOEYE, HOYA, HP, HTC, IDEALENS, INKRON, INTEL, IQE, ITRI, JDC, JADE BIRD DISPLAY, JDI, KOPIN, LETINAR, LIGHTING SILICON TECHNOLOGY, LG, LITEON, LOCHN, LUMINIT, LUMUS, MAGIC LEAP, META, META MATERIALS, MICLEDI, MICROOLED, MICROSOFT, MOJOVISION, MORPHOTONICS, NINTENDO, OCULUS, OHARA, OLIGHTEK, OMNIVISION, OPTINVENT, OSTENDO, PICO, PIMAX, PLAYNITRIDE, PLESSEY SEMICONDUCTORS, POROTECH, PUPIL LABS, QUALCOMM, RAONTECH, RAYNEO, RAXIUM, ROKID, SAMSUNG, SAPHLUX, SAPIEN SEMICONDUCTOR, SCHOTT, SEEYA, SENSIKS, SMI, SNAP, SONY, ST MICROELECTRONICS, STARBREEZE, SUMITA, SUNDIODE, SUNNY OMNILIGHT, TEXAS INSTRUMENTS, THEEYETRIBE, TOBII, TOOZ, TRULIFE OPTICS, TSMC, VALVE, VARJO, VEECO, VUZIX, WAVEOPTICS, XREAL and more.

Product objectives:

This report is a comprehensive view of the use of Augmented Reality and Virtual Reality in headsets, providing an in-depth understanding of the displays and associated optical vision systems.

Provide an understanding of the current status of AR and VR in general, and more detail regarding display and optical technologies:

• What are AR and VR? What are the key benefits? How do display considerations differ in this context? Why are optics mixed into the display equation?
• What are the roadblocks? How challenging are they? What are the roadmaps to overcome them?
• Detailed analysis of critical technological nodes: field of view, pixel density, optical combiner manufacturing, holographic and diffractive elements, microdisplay sources, efficiency, etc.

This report also reviews the global AR and VR industries and provides insights into the possible evolution and the necessary technological developments for consumer adoption. The technological roadmap provided herein will enable further analysis by the reader.

For each application, market metrics are provided for displays and optics. Computing and sensing are not addressed.

Key Features:

• Definition of AR and VR
• 2024-2029 AR Headset market forecast with technology breakdown (both display and optics)
• 2024-2029 AR Headset taxonomy roadmap (RGB vs. monochromatic, stereo vs. mono, FoV)
• 2024-2029 VR Headset market forecast with technology breakdown
• 2024-2029 Si related usage for AR microdisplay backplane forecast (12” wafer equivalent)
• 2024-2029 Substrate wafer forecast for AR eyepiece

What’s new?

• AR and VR market are about to resume after a 2 years slowdown.
• Apple created an air gap dealing with both VR headsets and OLED-on-Si display for VR.
• AI is expected to help AR market to ignite
• Technology mix and both AR and VR archetypes are getting clearer